The rise in property prices has stalled on Lanzarote, according to figures released for April by the island’s statistics centre.
Only Haría and Tinajo registered house price increases from March to April, while the other five municipalities all saw small decreases in the average price per square metre of sold properties. However, the figures involved are not large enough to warrant talk of a fall in house prices. There has simply been no significant change.
The main factor for the slow-down is believed to be the increase in interest rates, which is making mortgages more expensive for many buyers.
Nevertheless, house prices remain significantly higher now than they were a year ago. In Yaiza they are 23% higher than in 2022, while Tías and Teguise have seen rises of 7% and 8%. San Bartolomé is the only municipality where prices decreased on a year-to-year basis, by 4%.
Yaiza has the highest prices on the island, at €3,303 per square metre. Tías and Teguise are €2,805 and €2,259 respectively, while Arrecife prices have risen by 7% to €1,436 per square metre.
Lanzarote’s housing crisis remains an acute problem that incoming politicians will be strongly pressured to address in coming months. While the island’s recovery after the Covid pandemic has been impressive, many businesses are still finding it difficult to attract staff because of the lack of affordable properties for them to buy or rent.
The problem is not only affecting workers in the tourist sector. Staff shortages due to lack of accommodation are also affecting professional sectors such as education and the health service.
Campaigners complain that rent subsidies offered by the Canarian Government do not address the problem, and may even contribute to even higher prices. Plans for the construction of more homes, including social housing, are insufficient and do not address the immediate need for accommodation.
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